Thai growth likely to top 3% over next 1-2 years on new investments, minister says

BANGKOK - Thailand's finance minister said on Wednesday that he expects growth to top 3% over the next one to two years, boosted by new investments, with the central bank also stating it was in no rush to raise interest rates.

• Finance Minister Ekniti Nitithanprapas told reporters he was confident gross domestic product would grow 3% over the next one to two years as a result of new investments.

• Investments in the first quarter rose 18% annually to 260 billion baht ($8.05 billion), he said, adding that investment applications were at 1 trillion baht in the same quarter.

• The Bank of Thailand said earlier that it was in no rush to hike rates and that the risks of a second round of inflation were limited. adding that prices were expected to rise temporarily this year on higher energy prices and cost pass-throughs.

• The current policy rate was appropriate to support economic recovery, the central bank said in a statement.

• The country's economic outlook has dimmed and it requires a coordinated policy mix and structural changes to handle heightened risks from the Middle East war, the minutes of the central bank's April 29 policy meeting also showed on Wednesday.

• At the meeting, the monetary policy committee unanimously voted to keep the one-day repurchase rate unchanged at 1.00% as it assessed the impact of higher oil prices driven by the conflict in the Middle East.

• The next rate review is on June 24. Official first-quarter GDP growth will be announced on Monday.

• Consumption-based stimulus offered only transient economic support, the minutes said, adding that policy should prioritise structural transformation and the preservation of fiscal room to manoeuvre.

• Overall credit growth was expected to remain subdued this year, the minutes showed.

• The impact of the conflict has gone beyond higher energy prices and has become more broad-based, weakening purchasing power and raising business costs, the minutes said.

• Last week, Governor Vitai Ratanakorn revised growth forecasts to 2.1% this year and 2.6% for next, from 1.5% and 2.0% at a previous policy review.

• The upward revision in growth for this year reflects a 400 billion-baht ($12.4 billion) loan decree approved last week and a consumer subsidy scheme planned for June to boost consumption, Vitai said.

• The government this week said it would seek cabinet approval to borrow an additional 200 billion baht.

• Vitai has forecast headline inflation at 3.1% this year, easing to 1.4% in 2027, compared with the central bank's projections in April of 2.9% this year and 1.5% next year. Its target range is 1% to 3%.

• Southeast Asia's second-largest economy, which has lagged regional peers since the pandemic, expanded 2.4% last year.

($1 = 32.3100 baht)

(Reporting by Orathai Sriring and Chayut Setboonsarng; Editing by Martin Petty and David Stanway)

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This story was originally published May 13, 2026 at 1:03 AM.